How long did it take you to make a profit?

[Merlina Rodas]

I was having a discussion with a friend and she posed interesting question. How long does it take to make a profit once you start investing in real estate? Of course, there are many factors that contribute to how soon you make a profit, it depends on what exit strategies you decide to use, what type of investing you get involved in, etc. 

I'm curious though, once you invested how soon after did you begin to make a profit?

[John Thedford]

How are you defining "profit"? If you do buy and hold rentals, it can take years to recover all your cash invested. However, if the property cash flows well, you may end up with a net gain that must be reported your first year.  Flipping? Many make excellent profits within weeks or months after their investment? Money lending (hard money on RE)....profits start as soon as you start receiving interest payments (and writeoffs are almost non-existent). Guru writer? Depends on how many people you can sucker in:)

Personally, I made a profit the first year of investing and it has risen every year. Next year, due to market conditions, I expect to increase my income quite a bit with the few rentals I have and most of this will go to the bottom line.